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ADO Properties S.A. continues to expand in the first half year 2018

DGAP-News: ADO Properties S.A. / Key word(s): Half Year Results

15.08.2018 / 07:00
The issuer is solely responsible for the content of this announcement.

ADO Properties S.A. continues to expand in the first half year 2018
  • Dynamic increase of the income from rental activities by +26.4%
  • Portfolio grown by 15%
  • Like-for-like rental growth improved to 5.1%
  • EBITDA from rental activities +28.1% and FFO1 +24.8%
  • EPRA Net Asset Value per share at EUR 49.62 as of 30 June 2018
    (31 December 2017: EUR 45.10)
  • Dividend payout of EUR 0.60 per share (around +33%)
  • Management board confirms positive outlook for the 2018 financial year with an increased FFO 1 run rate guidance of at least EUR 66 million
Berlin, 15 August 2018 - ADO Properties S.A., the only Prime Standard listed residential real estate company solely focused on the city of Berlin, reports further successful portfolio expansion as well as a significant growth of its value in the first half year 2018. This is reflected by the key figures for the first six months of 2018 published today.
Continuous growth of the main key figures
The income from rental activities of ADO Properties rose in the first six months 2018 by 26.4% to EUR 64.9 million (H1 2017: EUR 51.4 million), driven by a solid 5.1% like-for-like rental growth and further significant expansion of the residential portfolio. The EBITDA from rental activities increased by 28.1% to EUR 46.7 million (H1 2017: EUR 36.5 million).
The FFO1 (from rental activities) rose by 24.8% up to EUR 33.3 million (H1 2017: EUR 26.7 million) equivalent to an FFO1 of EUR 0.76 per share (H1 2017: EUR 0.61 per share) due to the ongoing strong operational performance.
The average in-place rent of the residential portfolio was EUR 6.57 per sqm per month at the end of the reporting period (31 December 2017: EUR 6.42). The vacancy rate for the residential portfolio decreased by 50 basis points to 3.1% as of 30 June 2018 (31 December 2017: 3.6%) due to the increased speed of unit modernization.
Portfolio grows by 15%
In the first half year 2018 the portfolio of ADO Properties has grown significantly by EUR 498 million or 15% to EUR 3,819 million as of 30 June 2018. The portfolio comprised 23,487 units at the end of the reporting period, of which are 22,064 residential units (31 December 2017: 20,649 residential units), representing a growth of the number of residential units of 6.9%. The EPRA Net Asset Value of the portfolio amounted to EUR 2,188 million or EUR 49.62 per share as of 30 June 2018.
Lasting conservative financial structure and low interest rate of 1.8%
ADO Properties' financial structure remains conservative with an LTV of 41.8% by the end of the reporting period. The average weighted maturity of the outstanding debts is approximately 5.0 years while the average interest rate of the long-term debt is 1.8%. Almost all loans have fixed interest rates or are hedged.
Dividend payout of EUR 0.60 per share (+33%) - Management board confirms positive outlook and FFO1-prognosis for 2018
"At the end of the first half of the Business Year 2018 the value of our portfolio was approximately EUR 3.82 billion, representing a significant growth of EUR 498 million compared to the last external assessment in December 2017. Beside of this our like-for-like rental growth rose up to 5.1% which can be attributed first and foremost to our CAPEX strategy. The investments carried out as part of the CAPEX program, which entailed investing in newly acquired vacant spaces over the course of these past few months, are now starting to pay off", comments Rabin Savion, CEO of ADO Properties. "At the same time, this resulted in a drop of the vacancy rate to 3.1%. This pleasing development is one which our investors are able to experience directly: on 19 June 2018 a dividend payout of EUR 0.60 per share was agreed to at the shareholders' meeting in Luxembourg. This amounts to a year-on-year increase of around 33%. From this strong position we look ahead to the second half of 2018 with high expectations. Anticipating further growth and value increases for ADO Properties, we expect our 2018 year-end FFO 1 run rate to be at least EUR 66 million after closing all signed transactions and implementation of the long term financing."

Key Figures
01.01.18-30.06.18 01.01.17-30.06.17 Difference absolute Difference percentage
Income from rental activities, in MEUR 64.9 51.4 13.5 26.4%
EBITDA from rental activities, in MEUR 46.7 36.5 10.2 28.1%
EBITDA, in MEUR 48.2 37.8 10.4 27.5%
FFO 1 (from rental activities),
33.3 26.7 6.6 24.8%
FFO 1 per share, EUR 0.76 0.61 0.15 24.6%
FFO 2 (incl. disposal results),
34.7 28.0 6.7 24.0%
  30.06.18 31.12.17 Difference absolute Difference percentage
EPRA NAV, in MEUR 2,188 1,989 199 10.0%
EPRA NAV per share, EUR 49.62 45.10    
LTV, percent 41.8% 39.6%    
Residential units 22,064 20,649 1,415 6.9%
Portfolio value, in MEUR 3,819 3,321 498 15.0%
In-place-rent residential EUR/sqm/month 6.57 6.42    
Vacancy rate residential percent 3.1% 3.6%    
Maintenance and CAPEX, EUR per sqm 34.80 29.10    
Definitions of our alternative performance measures like FFO1 or EPRA NAV are available in our latest financial report under in the Financial Performance Indicators section.
About ADO Properties
ADO Properties is a Berlin-based business focused on residential real estate with a portfolio of approximately 23,500 units in Berlin. The Company has a fully integrated, scalable in-house platform with its own property management. Along with the responsibility for the condition of its apartments and buildings, ADO Properties also assumes responsibility towards people, employees, and neighborhoods. ADO Properties' portfolio is focused on central locations in Berlin and attractive suburban districts.

15.08.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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